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Wealth in India: HNW Customers

Wealth in India: HNW Customers

Summary

Part of a series of coverage, Wealth in India: HNW Customers analyzes the profile of Indian HNW individuals, from their investments to product demand to sources of wealth. This report is based on Verdict Financial's 2014 Global Wealth Managers Survey. The results of the survey are accompanied by best practice case studies on how to target Indian HNW individuals where applicable.

Synopsis

  • Understand the major sources of HNW wealth in India and the industries from which it has been amassed.
  • Interpret the investment portfolios of Indian HNW individuals through detailed asset allocation analysis.
  • Evaluate product and service demand among Indian HNW individuals, from discretionary asset management to art advisory and philanthropy services.
  • Analyze the best methods for capturing new Indian HNW clients and how best to maintain communication during the client relationship.
Reasons To Buy
  • How do Indian HNW individuals amass their wealth?
  • Which investments make up an average Indian HNW investment portfolio?
  • Which wealth management products and services are in demand in India?
  • How often do Indian wealth managers contact their clients through email, social media, and face-to-face meetings?
  • How do Indian HNW individuals compare to their global peers?
Key Highlights

Serving the Indian HNW investor market means understanding the pressures of family wealth and whether this is derived from family business or inheritance, given the high proportion of HNW investors who derive their wealth through these two means.

The Indian HNW investment portfolio reflects a traditional allocation with a heavy weighting on property and a typically high exposure to gold. Unlike many markets in Asia Pacific, the split between funds and direct holdings favors funds for equities rather than commodities.

The core services of discretionary and advisory asset management are the most sought after by HNW investors, with further growth in demand expected as wealth grows and the market matures. Similar high demand is to be found for planning services and credit, although demand growth will be weaker.


  • Executive Summary
    • Indian HNW investors are rediscovering their appetite for risk
    • Key findings
    • Critical success factors
  • Profiling the Indian HNW Customer
    • Earned income and family businesses in manufacturing and construction are major sources of wealth in India
      • Over half of Indian HNW wealth is held in the family or inherited, reflecting a strong traditional trend within the market
      • Many Indian HNW families have built their fortunes through manufacturing
    • The HNW expat opportunity in India is limited
      • Few HNW individuals in the Indian market are drawn from abroad
      • The expat market is mostly made up of nationals from the Indian diaspora
  • Understanding Asset Allocation Trends Among Indian HNW Investors
    • Portfolios are mostly allocated in property and cash
      • Property has endured market turmoil as a HNW investment favorite
      • Detailed asset allocation shows Indian HNW individuals favor direct property, local deposits, and equity funds
      • Indian HNW individuals favor holding equities and bonds through funds
      • Indian wealth managers expect to increase allocation into equities, bonds, and alternative investments
  • Product and Service Demand Among Indian HNW Individuals
    • Asset management services
      • Demand is high for both core managed wealth propositions
      • Demand for brokerage services will rise little faster than discretionary
    • Planning services
      • Indian HNW individuals expect their wealth managers to advise on tax efficiencies
      • Financial planning will still be sought after within two years, but pension and tax planning will see significant rises in demand
    • Credit products
      • Demand for loans is high among Indian HNW individuals
      • Demand for all credit is expected to increase significantly over the next two years
    • Art advisory and philanthropy services
      • HNW individuals are not about to turn to art investments
    • Insurance advice
      • Comprehensive insurance advice is valued by a substantial minority
      • Insurance advice will see growing demand over the next two years
  • Customer Acquisition and Communication
    • Client acquisition
      • Clients and a relationship manager's own contacts are critical tools for client acquisition
    • Client communication
      • Face-to-face communication occurs either monthly or quarterly
      • High client contact can be onerous, but can be mitigated by mobile apps
      • Currently the most frequently used channel for remote communication is the website
      • Social media uptake by the Indian wealth industry remains typical of Asia Pacific
      • Mobile apps are largely a way to contact relationship managers
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Affluent
      • Mass affluent
      • HNW
      • Liquid assets
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
    • Bibliography
    • Further reading

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